$131/bbl critical support level for crude: Global Fin Mkts

Excerpts from Closing Bell on CNBC-TV18 Watch the full show » RELATED NEWS Crude drops further to $134/bbl Nifty BSE | NSE 25/05/12 Are Mutual Funds betting on Nifty?

Bharath Kumar  of Global Financial Markets  said that he is watching the critical support of USD 131 per barrel. "Once it breaches around USD 129-131 per barrel on the lower side, we are expecting around USD 122 per barrel on the lower side. Maybe in a couple of weeks USD 131 per barrel should be breached," he said.

Excerpts from CNBC-TV18's exclusive interveiw with Bharat Kumar: 

Q: How would you trade crude right now?

A: In case of crude, the overall trend is sideways to downwards. On the higher side around Rs 6,000 range is a major resistance as of now. Unless it trades above 6,050 ranges, we do not expect further rise in the crude prices. On the lower side we are expecting around Rs 5,720 and then afterwards Rs 5,650, which happens to be the major support for the market. Historically we have seen congestion at Rs 5,700 range, that is a level one needs to watch.

Q: Do you see crude breaching USD 130 per barrel anytime soon?

A: We are watching that critical support of USD 131 per barrel. Once it breaches around USD 129-131 per barrel on the lower side, we are expecting around USD 122 per barrel on the lower side. Maybe in a couple of weeks USD 131 per barrel should be breached.

Q: How are you trading gold right now because that has held on better than what crude has been doing but is it a sell for that as well?

A: In case of gold also, it's somewhere on MCX Rs 13,424 to Rs 13,430 ranges and stop loss needs to be maintained about Rs 13,500-13,550 ranges. Once the market closes above Rs 13,550 ranges we are expecting fresh buying in the market. But till it is trading below Rs 13,424-13,430 ranges, on the lower side we are expecting around Rs 13,250 and then afterwards Rs 13,150 range.